Trevor Sargent (Dublin North, Green Party)
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Question 129: To ask the Minister for Communications, Marine and Natural Resources when a decision will be made on the proposed new electricity interconnector across the Irish sea; the scale of interconnection which is appropriate; and the way in which the interconnector will be built and financed. [2192/06]

Ruairi Quinn (Dublin South East, Labour)
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Question 140: To ask the Minister for Communications, Marine and Natural Resources his plans to develop an east-west interconnector; if a decision has been taken on whether same will be developed on a regulated or hybrid regulated or merchant basis; and if he will make a statement on the matter. [2104/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 129 and 140 together.

Security of energy supply is a key policy objective. The relatively small size of our national electricity and gas markets underlines the need for greater interconnection as a means of enhancing security of supply, promoting competition and integrating the Irish electricity and gas markets into the wider European market.

As I have previously advised the House, the Government is fully committed to progress the development of east-west electricity interconnection as a matter of priority. In line with Government's priority wish, the Commission for Energy Regulation, CER, at my Department's request has been engaged in a process of rigorous exploration of the options for such development.

The CER engaged a consortium of external professional advice on the financial, technical, commercial and procurement aspects of the development. A consultation process was undertaken by the consortium with parties who expressed an interest in the past to the commission relating to the project or had a potentially relevant perspective to share in relation to it. The report of the consultants, which is now complete, includes a comprehensive technical and legal review and an analysis of the regulatory and procurement dimensions. I recently met the commissioners for a briefing on the report at which I again underlined the priority need to move ahead with the development.

The next step in the process is to decide on the best mechanism to take the east-west electricity interconnection project forward, be it on a regulated or a hybrid regulated-merchant basis. The decision will be informed by the advice of the commission in the matter, as soon as it completes its detailed consideration of the findings of the report.